Problem 18-16 (Algo) Dividend valuation model and wealth maximization [L018-2] Omni Telecom is trying to decide whether to increase its cash dividend immediately or use the funds to increase its future growth rate. P0=D1/Keg P0= Price of the stock today D1= Dividend at the end of the first year D1=D0(1+g) D0= Dividend today e= Required rate of return g= Constant growth rate in dividends D0 is currently $2.50,Ke is 10 percent, and g is 4 percent. Under Plan A,D0 would be immediately increased to $2.70 and Ke and g will remain unchanged. Under Plan B, D0 will remain at $2.50 but g will go up to 5 percent and e will remain unchanged. a. Compute P0 (price of the stock today) under Plan A. Note D1 will be equal to D0(1+g) or $2.70(1.04).ke will equal 10 percent, and g will equal 4 percent. Note: Round your intermediate calculations and final answer to 2 decimal places. b. Compute P0 (price of the stock today) under Plan B. Note D1 will be equal to D0(1+g) or $2.50(1.05).Ke will be equal to 10 percent, and g will be equal to 5 percent. Note: Round your intermediate calculations and final answer to 2 decimal places